deviation rate ( cashback forex calculator Online) cashbackforexpipcalculator to describe the distance between the stock cashbackforexcalculatorOnline cashbackforexprofitcalculator the moving average of the stock price BIAS refers to the relative distance 1. the formula and parameters of BIAS N-day deviation rate = (the days closing price - N-day moving average price) / N-day moving The numerator is the absolute distance between the share price (closing price) and the moving average price, which can be positive or negative, divided by the denominator, which is the relative distance The difference of 0.1 yuan when the moving average price is 1 yuan is very different from the difference of 0.1 yuan when the moving average price is 10 yuan, so the relative distance should be used on certain occasions, and the absolute distance should not be considered The formula of BIAS contains only one parameter, namely MA In this way, the parameters of MA are the parameters of BIAS, i.e. the parameters of the deviation rate are the parameters of the moving average price, which means that the choice of the size of the parameters of the number of days affects MA first and BIAS second. For example, if the parameter is 5, we may think that the stock price should turn back when the BIAS reaches 4%, while if the parameter is 10, we must wait until the BIAS exceeds 4%, lets say to 7%, before we think that the stock price should turn back. 2. In addition, the relationship between price and demand in economics is also the reason for this centripetal effect low demand, demand is large, supply exceeds demand, the stock price will rise; conversely, the high price of the stock demand is small, oversupply, the stock price will fall, and finally reach equilibrium, the equilibrium position is the center of the BIAS application of the law is mainly from two aspects: (1) from the BIAS take the value of As long as BIAS exceeds this positive number, we should feel the danger and consider throwing, as long as BIAS is lower than this negative number, we feel that the opportunity may come and consider buying. It should be noted that this dividing line is related to three factors: 1) the size of the parameter selected by BIAS; 2) the specific stock selected; 3) the height of the dividing line may vary from period to period In general, the larger the parameter, the larger the dividing line for action The more active the stock, the larger the dividing line selected In this book, these reference values for the selection of the dividing line are given It should be noted that they are only references and we They should be adjusted appropriately according to the specific situation The following is just an example 1. BIAS (5) > 3.5%, BIAS (10) > 5%, BIAS (20) > 8% and BIAS (60) > 10% is the time to sell; 2. BIAS (5) < 1.3%, BIAS (10) < 1.4.5%, BIAS (20) < 1.7% and BIAS ( From the above figures, we can see that the choice of positive and negative numbers is not symmetrical, generally speaking, the absolute value of positive numbers than the absolute value of negative numbers is larger than, for example, 3.5 > 3, 5 > 4.5, etc. The absolute value of such positive numbers is large is the general rule for the selection of the dividing line If encountered due to sudden positive or negative news generated by the surge and plunge, those above Reference figures certainly do not work, should consider other contingency measures related to the experience of personnel summed up, when the plunge; 1. For the composite index BIAS (10) > 30% for the time to sell; BIAS (10) <-10% for the time to buy 2. For individual stocks: BIAS (10) > 35% for the time to sell; BIAS (10) <-15% for the time to buy (2) from BIAS curve shape considerations morphology and tangent theory on BIAS can also be applied 1) BIAS formed from the top to the bottom of two or more falling peaks, and at this time the stock is still continuing to rise, then this is a signal to throw 2) BIAS formed from the bottom to the top of two or more rising valleys, and at this time the stock is still continuing to fall, then this is a signal to buy The above two for the principle of indicator deviation and (3) from the combination of the two BIAS lines considered when the short-term BIAS at high levels down through the long-term BIAS, is a sell signal; at low levels, the short-term BIAS up through the long-term BIAS is a buy signal 3. Application of BIAS should pay attention to the problems (1) the specific figures provided in the book is only a reference, the correct approach is to find the location of the dividing line in practice themselves (2) in (3) The application of BIAS should be combined with the use of MA for better results. Of course, the combination with more technical indicators will also greatly reduce BIAS errors. 1) BIAS crosses the 0 line from above or BIAS crosses the 0 line from above or below may also be a signal to take action. A top crossing is a buy signal and a bottom crossing is a sell signal because at this point, the stock price also crosses the MA in the same direction. 2) If BIAS is positive and the stock price is above the MA, if the stock price falls below the MA but then bounces back above the MA and BIAS also shows the same trend, then this is a buy signal. 3) If the BIAS is positive and falls back towards 0, and if it bounces upwards when it approaches 0, then this is a buy signal.
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